5 PowerRatings Stocks for the Next 5 Days: WDC, SYNT, XRTX, WRLD, NTCT
Still waters run deep … do still markets yield better pullbacks?
Traders could be forgiven for thinking so — after all, as of Monday’s close we have more than 14 stocks with Short Term PowerRatings of 9 and three with our highest Short Term PowerRating of 10.
Keep in mind that stocks with PowerRatings of 10, according to our research into short term stock price behavior from 1995 to 2007, have outperformed the average stock by a margin of nearly 17 to 1 after five days. Nine rated stocks also performed well in our historical testing, besting the average stock by more than 13 to 1.
A free, 7-day trial to our Short Term PowerRatings is the fastest way to learn what those 10-rated stocks are. For now, though, let’s look at some of the more attractive stocks with Short Term PowerRatings of 8 and 9 that traders who like to buy low and sell high may want to keep an eye on over the next few days.
Western Digital Corporation
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WDC |
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PowerRating) Short Term PowerRating 9. RSI(2): 4.14
Syntel Inc.
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SYNT |
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PowerRating) Short Term PowerRating 9. RSI(2): 2.72
Xyratex Ltd.
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XRTX |
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PowerRating) Short Term PowerRating 8. RSI(2): 4.33
World Acceptance Corporation
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WRLD |
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PowerRating) Short Term PowerRating 8. RSI(2): 3.44
Netscout Systems Inc.
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NTCT |
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PowerRating) Short Term PowerRating 9. RSI(2): 3.51
Of the five stocks in today’s report, we are fortunate enough to have not just five stocks with high Short Term PowerRatings of 8 or 9, but also five stocks that have Short Term PowerRatings of less than 5.
We think there may be no more valuable technical indicator for short term stock traders than the 2-period Relative Strength Index. Ironically, as popular as the RSI is for traders of all types, we find that short term traders have been somewhat ill-served by this indicator as it has been traditionally used.
We “shorten the stroke” on the standard RSI by changing the default “look back” period from 14 to 2. We also force stocks to reach more extreme levels before declaring them overbought or oversold compared to traditional approaches to the RSI.
The result, in our research, has been a new, renovated technical indicator that we have found particularly helpful not just in helping traders spot trading opportunities, but also to assist traders in discriminating between otherwise equally-worthy potential trades.
Applied to the five stocks in today’s report, the 2-period RSI reveals all five stocks to be especially oversold and attractive — with the 9-rated Syntel Inc. perhaps being the standout.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days.
| Click here to start your free, 7-day trial to our Short Term PowerRatings! |
Whether you have a trading strategy of your own that could use a boost or are looking for a way to tell the stocks that will move higher in the short term from the stocks that are more likely to disappoint, our Short Term PowerRatings are based on more than a decade of quantified, backtested simulated stock trades involving millions of stocks between 1995 and 2007. Click the link above or call us at 888-484-8220, extension 1, and start your free trial today.